Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Shannon Cross from Cross Research.
Shannon Cross - Cross Research
Can you talk a little bit more about what you are hearing from your partners on the Fiery side? Their thoughts on inventory, their thoughts on demand and then what you are hearing in your direct business from customers on the inkjet side just in terms of how they are thinking about 2010 budgets, if anybody is talking about that yet?
Guy Gecht
Starting with our partners I think you saw they issued their thoughts in the press release. We talked to all of them. I was in Japan last week and met with the Japanese partners. They are pretty conservative as far as how quickly they think things will improve. They understand the new products can help and I think they are focusing on getting new products to the market next year. They think like us on the inkjet refinancing they are all concerned about that as a lot of the buyers in the professional market at least are small to mid size companies that do not necessarily have a strong balance sheet who can easily obtain financing and that is certainly a concern for all of us. I think that they are going to wait and see, they would like to get new [inaudible] the pipeline is pretty full, so from their perspective they are fairly happy, but nobody is expecting a sharp turn as far as demand.
Our Fiery outlook, by the way, the fact that we saying that Fiery will increase quarter-on-quarter a lot of it has to do with the new Canon line up and the fact that the inventories are pretty tight right now. They are working on the inventory, some faster than others, more distant than others, but all of them are at inventory levels that they think they are comfortable with, at least when it comes to Fiery.
Talking about the inkjet side, customers are seeing better business, I would say in general. I did not talk to a single customer that said that things are getting worse. They are either not getting worse or getting better. We can certainly see that improvement in the ink demand, so people are starting to spend more money on advertisements. It is still tough for them to make a buying decision about new equipment while they see the business recover they are certainly enough capacity and the people that would like to buy new equipment many of them are still facing difficult times obtaining financing and again the situation is worse in Europe than it is in North America, though again it is not a slam dunk in North America to get financing.
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